Budget 2022: Economic Survey Cuts Growth Estimates From 9.2% to 8.5%

The survey also predicted an orderly withdrawal of global liquidity by major central banks.

Nirmala Sitharaman, Union Finance Minister.

(Photo: PTI)

Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2021-22 in the Lok Sabha on Monday, 31 January. As per the survey, India is slated to see a growth of 8 percent to 8.5 percent in the upcoming fiscal year (starting April 2022).

This growth estimate is down from 9.2 percent projected for the current financial year.

The Economic Survey is the annual report card of India's economic achievements and provides new estimates.

"This (growth) projection is based on the assumption that there will be no further debilitating pandemic-related economic disruption," said Sanjeev Sanyal, principal economic adviser at the finance ministry and the lead author of the Economic Survey.

According to ANI, he said, "India's GDP is projected to grow in real term by 8-8.5 percent in 2022-23. We will still be the world's fastest economy."

The principal economic advisor said, "Many commentators expressed fear in the last two years that the financial system will be very stressed due to the pandemic-related shock. However, this sector has weathered out rather well."

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As per the government’s Economic Survey, all macro indicators show that India is well placed to face challenges with improved farm and industrial output growth.

The report also predicted an orderly withdrawal of global liquidity by major central banks.

Soaring retail prices and household debt have weakened private consumption, which accounts for nearly 55 percent of GDP, since the coronavirus outbreak in early 2020.

India's economy has been recuperating since the government lifted the lockdown in several States in June last year to curb the spread of coronavirus, after contracting 7.3 percent in the previous fiscal year.

(With inputs from Reuters.)